United Kingdom: The labor market a little less tight

(CercleFinance.com) – Employment figures have changed little in Great Britain over the three months to the end of June, a trend which shows that the dynamic British labor market is beginning to suffer from the sharp slowdown in the country’s economy .

According to figures released this morning by the ONS, the national statistics institute, the rate of people in employment fell by 0.1 point over the period, to 75.5%, a figure which remains below pre-pandemic levels.

The unemployment rate calculated according to British standards is also down 0.1 point over the period, to 3.8%.

Employee compensation, including bonuses, increased by 5.1% on an annual basis over the three-month period to the end of June. Excluding bonuses, wage income increased by a further 4.7%.

But in real terms, i.e. taking inflation into account, average wage income, including bonuses, fell by 2.5% over the three months to the end of June on an annual basis, even posting a fall record 3% excluding premiums.

These figures are likely to rekindle concerns regarding high inflationary pressures in the country and therefore argue in favor of another rate hike from the Bank of England next month.

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